Traditional department stores are squeezed by electricity dealers or become the next disappearing business

Source: Internet
Author: User
Keywords Department stores traditional department stores China consumers Beijing
Editor's note/same brand, almost no difference in decoration, discount promotional Practices Similar ... A lot of people will feel this way when they visit traditional department stores.

now, the consumer's bad experience has become the brutal reality of the traditional department stores: in recent years, the Pacific department stores, Shanghai first department stores and other well-known department stores have closed down, is not the traditional department stores will become the next entity bookstore, disappeared in the street?

said the disappearance may be too exaggerated, but the reality is that the traditional department store after nearly a decade of rapid development period, indeed came to a bottleneck: online shopping, consumer buying habits and the pressure of their own costs have made the traditional department store faced with the test of life and death speed. and traditional department stores in the transition to high-end consumption on the road, business model is also facing great challenges, successful cases are very rare. Where is the future outlet of the traditional department store industry? What has become a fetter in the process of transformation? See the series: Traditional department Stores: the next disappearing business? ", this issue is the last chapter: the status quo, focusing on questions and analysis issues; Next we will launch a first-line survey and the future Hope to benefit the reader. Related reports See C6 version

a few days ago, Shanghai First department store, Huaihai store closed, soon after, here will be replaced by BMW brand display shop. The first department store, which opened in 1993, was once the landmark department store in the area, and it was a roaring operation in the late 90, and 19 years later it suddenly chose to close the door.

First department store in Huaihai store witnessed the development of our traditional department stores from a staggering start to encountering a squeeze from a large store to a "golden age". Although the first department store has its own reasons for the closure of the Huaihai shop, such as the volume is too small, positioning is not allowed and the location is not suitable, but its ups and downs and the development of the industry background is inseparable.

today, the traditional department stores in China face severe challenges. First, as China's economy slows and consumer confidence declines, retail sales have been severely affected in the last six to 2011 years. And the business is not the main necessities of life is the first department stores, and secondly, professional, the rise of the store has diverted the traditional department store consumer, and in recent years, E-commerce in the great business of the Department of Commerce to form a huge impact.

Fan Yanju, Deputy Secretary-General of China's Department of Commerce, said that since the 2003 SARS, China's department store industry has experienced a period of gold development for nearly ten years, now affected by economic environment and Industry competition, the department store industry is facing the transition pressure. And in the retail industry, the industry's reference to the "department store" is also increasingly less, replaced by a more general, more capacity of the shopping malls, "department store" this once to meet consumer shopping as the main goal of the traditional industry gradually away from us.

sales to the downward channel

"Since last year's ' 11 ', the sales of China's major department stores have dropped sharply, and now it has plummeted." This is the phenomenon that has never been seen in the last 20 years, and some department stores have to pay for their own brands to complete their tasks. "May 24, White Collar Fashion Co., Ltd. chairman of the Miao on Weibo so sigh.

a number of general merchandise industry bosses also said the company's operating conditions this year is not optimistic. "With the department store's peer exchange found that from January this year, the general merchandise industry has shown a downward trend." "Century Lian Hua hundred Qing Shopping center general manager He Xiangyang to" China Business newspaper reporter said. Zibo Dongtai Group, a mall vice-president told the newspaper reporter, this year the mall sales and the same period last year. But in view of the inflation factor, the actual sales volume is falling. An executive at Anqing New hundred department store said: in the first quarter of this year, the general performance of the retail industry is dismal, the trend is more obvious in the department store industry.

and on April 7, the Ministry of Commerce notified the first quarter of 2012 operating conditions, said: "By the automobile, home appliances, gold and silver jewelry, furniture and other high-end consumer demand momentum weakened, large circulation enterprises sales growth slowed significantly." In the first quarter, retail sales of consumer goods, which were above the quota, Rose 15.6%, slowing 6.9% per cent from a year earlier, and falling more than 5.4% per cent of the national average.

, president of China Chain Management Association Guo Goping that, affected by domestic and foreign economic situation, the first quarter of this year, China's retail business growth slowed, individual enterprises even negative growth, retail industry is in the extension of expansion to the connotation of the growth of the transformation of the development period.

economic situation, consumers lack of confidence, will naturally cover the hands of "money bag." And because the department store business to jewelry, cosmetics, clothing, home appliances and other non-essential necessities, in the retail industry, the general performance of the dismal background, the department store industry more significant.

At the same time as the sales slowdown, labor, rent and other costs have become a test department stores another heavy pressure. "Compared with the same period last year, labor costs rose 20%, coupled with the water and electricity, rent and other costs increased, the overall operating costs of the increase in 20%~30% around." He Xiangyang told reporters.

last September, Pacific department stores withdrew from the Beijing surplus center due to exorbitant rents. "Today's rents are ridiculously high compared to the 10 years ago when Pacific department stores were stationed at the PCCW center," he said. "The Pacific department store insiders said to the media. According to its disclosure, the Pacific Century Center at the end of the month to open the entire lease of the Ocean department store price of 28 yuan/square meters • Month, to 65,000 square meters of scale, the annual rent of 21.84 million yuan.

multi-Channel extrusion

"I fancy a brand of sandals, first in the department store to try to wear, choose a good color, style and then on Taobao purchase, the price is One-third department stores." Beijing girl Wangxiao and colleagues to share shopping experience. Wangxiao in Beijing have a car, a monthly income million, such a revenue class is the department store business Target customers.

in recent years, China's e-commerce has exploded. China E-commerce Research Center released the latest "2011 China Business E-commerce Market Survey Report" shows that in 2011 China's network retail market trading scale exceeded 800 billion yuan, up to 801.9 billion yuan, an increase of 56%. Among them, the clothing class to 203.5 billion yuan of annual turnover, steady sit 2011 years the head of the market. It is reported that as of December 2011, the domestic enterprise, Consumer-to-consumer and other electronic business model enterprises have reached 20,750, an increase of 43.1%. And China's online shopping users up to 203 million people, an increase of 28.5%.

of the annual increase in the online shopping market, eating away the share of traditional department stores. "There is no denying that the larger category of department store sales is also the category that facilitates the online purchase, such as home appliances, it products, textiles, and even some luxuries." He Xiangyang told reporters.

International analyst Shou sent the view: "The rapid growth of the retail market scale originates from the continuous maturation and perfection of the Chinese online shopping environment, as well as the continuous expansion of the net-buying users and the penetration rate of the Internet users." The reporter learned that with the improvement of enterprise service and product quality, the trust and dependence of consumers on the net purchase is enhanced, and the customer base is gradually expanded from the young main consumer group to the High age layer, which shows the development trend from low consumption, low frequency to consumption, and multi frequency evolution.

At the same time, the escalating price wars of the consumer Web site have attracted and diverted consumers ' sway between traditional department stores and online shopping. Days ago, the cat Electric City announced in 200 million yuan investment based on the additional investment of 200 million yuan. It is reported that 100 million yuan in cash for the June consumer direct subsidy, another 100 million yuan for consumers to buy return shipping insurance. At the same time, Xun network also slashed prices, was interpreted as the industry Xun Network launched a mobile phone price war fuse, directly to Jingdong Mall.

in fact, the traditional Department of Commerce poses a threat to not only e-commerce, some supermarkets, stores of the development of the original department store system to form further deconstruction. "According to conventional wisdom, department stores should be all-inclusive. In the early days of liberation, department stores even sell bicycles. Later, with the rise of Gome (micro-blog), Suning and other household appliances stores, department stores narrowed the original home appliance area, some 3C communication chain to the department store communications equipment impact, and some clothing brand proprietary stores also to the department store's clothing area investment to create challenges. "Shanghai Shangyi Management Consulting Co., Ltd. General manager Hu Chun told reporters.

Transformation Difficult

"from 2003 ' Sars", China's general merchandise industry ushered in the gold development period of nearly ten years. Now it is a time of transformation for the department store. Fan Yanju told reporters.

an obvious phenomenon is that in recent years, the industry's reference to "department stores" has been less and more replaced by another name "Shopping center." Shopping center, also known as shopping Mall, refers to the commercial complex, which is located in accordance with the business circle, combines many shops together, develops and operates overall.

from the consumer's point of view, the shopping mall is equivalent to a strengthened version of the department store, in meeting consumer demand for shopping on the basis of increased catering, leisure, entertainment and other effects, with a stronger ability to gather passengers. Wanda Plaza For example, in addition to shopping, there are Wanda Hospital line, KTV, game halls and other ancillary facilities. From the business point of view, shopping malls to commercial real estate projects to develop, most of the department stores in the form of the main store into the shopping center.

Survey data show that department stores in Japan for nearly 100 years, the current Department of Commerce in Japan has not occupied the main circulation status, in the retail sales accounted for only 10% of the proportion; From 2000 to now, as Japan's population aging, the department store has been in negative growth period.

In recent years, the rapid development of commercial real estate in China has made shopping malls go through the road and replaced the traditional concept of single department stores. "Consumer demand has changed markedly. Now people need to be able to relax after shopping, but also to eat. On weekends, the family will watch a movie together while shopping. Shopping mall is to meet the consumer shopping, leisure, entertainment, a form of business, really do a ' one-stop service '. He Xiangyang to reporters, "in the future, many traditional department stores will turn to shopping malls, shopping malls will become an obvious trend." ”

At the same time, the traditional department stores are facing adjustment and transformation at the operating level, while the

of the department store "self" and "joint venture" are frequently mentioned.

at present, China's department stores are mainly to the merchant to collect rent (investment) in the form of business, which is called "Pool" mode. According to the business model of the developed Countries, department stores should brand a "buyout" and call it "self". The advantage of the joint venture is that the department store rents in the form of two landlords, "Hanlaobaoshou", reduce the business risk, the disadvantage is that there is no pricing right for goods and brands, development potential is limited. Self-owned advantage lies in, the commodity has the pricing power, may obtain the higher profit, but the risk is big, to the enterprise management especially "buys the hand" the level to have the high request.

Many industry experts believe that traditional department stores may try to transfer from the joint venture to the self. But in Fan Yanju's view, the difficulty is enormous. "This involves not only the department store itself, but also the brand business." Our brand in every place is operated by agents. The distribution mode of the layer agent determines the difficulties of the department store's proprietary brand. "Fan Yanju said.

China department Store these years

1900 to 2008 incomplete records

hundred years ago, the Russians opened the "Autumn Forest Co.," in Harbin, opened the first page of China department store; After a century, the grocery store as a mature industry in China everywhere. During this period, the movement of China's general merchandise industry, although ups and downs, but also brilliant.

First act: The origin of the department store

appearance character

Ma Choubiao, Guo Le, Kwok Cool

pop vs. brothers (1917)

In the early morning of October 20, 1917, a limousine parked in Shanghai Nanjing Road, which is the most prosperous in the Far east of the commercial Street. Australian overseas Chinese Ma Choubiao from the car, today is his investment to create the company-first store opened the day, he knew that today is destined to create a history.

The opening of the

company has caused a great stir, and people are scrambling to observe the collection of rooftop theatres, East Asia hotels and luxury restaurants in one of the foreign shops. Nanjing Road is a sea of people, even some linger among them, a few days do not return. Ma Choubiao's wife, collocation Lady Hoqingxian also came to the assistant, when up. In that conservative era, the Hoqingxian with short hair became a beautiful scenery in the shop.

opened the next year, the first company's turnover reached 4.39 million yuan, a full investment of twice times. But Ma Choubiao had no time to celebrate because his opponents had already come. Guangdong Guo Le, Guo Brothers in Hong Kong after the creation of the Yongan department store, then looked to Shanghai Nanjing Road.

The opening of

wing has stimulated the directors of the company, who agree that they cannot be allowed to surpass themselves in height, then the 5 floor to 6 floors, Wing Yong also not to be outdone, in their own roof stamped "Qi Celeste", and first put on an equal footing; first swallowed this tone, and obstinately in their own roof added a 3-storey "Mo Xing Lou".

staff has a new identity (1956)

decades later, Yong ' an department store later on, instead of first Shi department store became the first major department store in Shanghai. At this time, China has undergone a great change, the founding of New China, the people are the Masters. Yongan department Store founder Guo Le also to the company general manager's seat to the nephew Kwok cool, oneself then return to Hong Kong when Yu Gong went. 1952, China gradually implemented the socialist transformation of agriculture, handicrafts and capitalist industry and commerce (three major transformation), some traditional old department stores will face the transformation of "public-private partnership", Shanghai's Yongan department store is no exception.

second act: state-directed Operation

appearance character

Pengcheng, Zhang Binggui, Mao Dongsho, Hu Zijing

"New China First Floor" ground level (1955)

after liberation, our country undone. Pengcheng, director of Beijing Municipal Bureau of Commerce, has been plotting to build a landmark state-owned mall.

August 26, 1952, the Ministry of Trade (after the Ministry of Business) formally approved the construction of the department store building plan, and agreed to take part in the construction of all shopping malls investment. Since then, the construction of Wangfujing department store has been put on the agenda.

after several twists and turns, September 25, 1955, the department store finally ground up. As "the first floor of New China", the opening of the department store has won the attention of leaders at all levels: the Ministry of Commerce, Beijing Municipal government, municipal Bureau of Commerce and other relevant leaders came to attend. The then Beijing deputy Mayor Zhuyuanzhang the opening ceremony. Opening day, the customer flow of up to 164,000 people, freight yard crowded, daily sales of 309,000 yuan.

The opening of

Wangfujing department store opened the prelude of Beijing Commerce after the founding of the PRC. China's general merchandise industry enters the state-run era.

Zhang Binggui's "A Fire" (1955)

if the Wangfujing department store is a landmark commercial building in the new China, then its salesperson Zhang Binggui is the spiritual symbol of the staff in this era. In addition to the "one grasp" and "a clear" ability, Zhang Binggui there is a "fire" spirit, he has such a famous saying: We shop assistants have a fire in the chest, warm the hearts of customers, establish a "complete", "thoroughly" the idea of serving the people.

from Zhang Binggui This quote can be seen after the founding of China's general merchandise industry characteristics: three-foot counters obstruct the customer and the relationship between the sales staff. At that time, China's department stores not only responsible for commodity circulation, as a window unit, but also shoulder the responsibility of government image. Therefore, Zhang Binggui is the background of this era of business talent.

Mao Dong sound Loan "Trouble" (1982)

History of the Wheel of the the late 1980s, China's department stores rise to transform the wind. And this ethos is brought up by a man named Mao Dongsho.

1982, Mao Dongsho as general manager of Wuhan Shopping Center. At that time, the business area of 7400 square meters, annual sales of 100 million yuan, is the country's largest shopping malls. But Mao Dongsho thinks the shopping area is too small, the decoration is too shabby, proposed to rebuild the Wuhan shopping center. Without the support of the municipal government, Mao Dongsho to find a way to borrow. After the alteration of the shopping malls, not only the business area expanded by one times, but also the introduction of cafes, amusement hall and optometry with the mirror and other traditional department stores without any of the services. After the transformation of the first year of the opening of the martial arts, sales breakthrough 200 million yuan. 1986, the Ministry of Commerce organized the National 150 large and medium-sized commercial enterprises in Wuhan shopping Center held on-site exchange, sparked a nationwide large-scale shopping malls to expand the decoration of the upsurge. Mao Dongsho's financing through bank loans reflects the state-run business already having some "market economy" breath.

The third act: The

of the times of the general merchandise industry

appearance character

Wang Suizhou, Chen, Zhunglu

hundred shops closed the trend (1993-1998 years)

1993, around the country, a burst of department store construction Wind. At that time, a leader of the city of Beijing proposed: 2000 Beijing will build 100 large department stores. Professor Li, who has just returned from Paris, is deeply wrong. In contrast to the Beijing and Paris markets, where there are only 20 department stores in Paris, where consumption potential is much larger than in Beijing, plans to build 100 large stores in Beijing should be carefully considered. Subsequently, the economic daily launched a "big shopping mall is more or less," the big discussion, many business experts in Beijing participated in the discussion.

a few years later, scholars ' fears became a reality. After a burst of construction of the market, 1997, the Chinese department store industry into a low ebb. 1998, it is also known as the closure of the department store business year. such as Shanghai 100 XI ' An branch, Beijing, such as the collapse of the Lafayette is no longer what news.

hero not seen Wang Suizhou (1990)

Two years before the opening of

Asia, Wang Suizhou was a "nobody". It never occurred to me that only two years later, Wang Suizhou became a hot figure. In the 1990, Wang Suizhou's chain of Empire, Asia, was advertised on CCTV. His carefully planned advertising language, "Where to go in the central Plains-Zhengzhou ' Asia '", become a classic retail marketing case. A Tianjin pupil to the mall general manager wrote that the teacher layout composition title "My Ideal", a lot of students in the class are: "To Asia as a salesperson!"

Asia's advertising marketing and price tactics caused the surrounding shopping malls "courageously fight back." Redbud Mountain Shopping Mall, Zhengzhou Department store, mall building and a shopping mall in the western suburbs of Zhengzhou have to fight, the Central Plains war broke out.

because the shop speed is too fast, the front shop is too long, only pay attention to marketing means and media hype Asia ignored the strength of the enterprise itself, and gradually decline. And Wang Suizhou also perceived something, but also powerless. In 1997, Wang Suizhou resigned as general manager of Asia Group on his 40 birthday.

Hualian Debut (1995)

in the 80 's, people are unfamiliar with the concept of "chain operation". At this time, China has appeared "category chain" of the national business organization, it is Hualian. In February 1982, Liu was the Minister of Commerce at the time. In order to build a big socialist business, Minister Liu decided to set up a nationwide mall joint organization. After several brewing, the Ministry of Commerce funded 150 million yuan, distributed to the coastal 14 cities and 7 Special Economic zones of large department stores, the establishment of Hualian, headquartered in Tianjin.

Hualian has undoubtedly become the state-run commercial "gold-plated", but because of different parts of the country Hualian business, operating grades are uneven, operating conditions are not ideal. With the establishment of the Hundred Union Group, 2004, Hualian merged into the Department of General Merchandise division, gradually withdrew from the stage of history.

Chen ran away Tongluowan (2005)

1995, Wholesale clothing earned some money Chen to visit the United States, found a kind of called "SHOPPING MALL" in the local industry is popular. After returning home, inspired by the Chen rented Shenzhen Huaqiang north of the three factories, began the "motorcycle action."

1997, a monster called "Cmall" (Tongluowan department store) landed in Shenzhen Huaqiang North. This is an old factory, Chen invested more than 70 million yuan for renovation renovation, 65,000 square meters of business area distribution of department stores, supermarkets, sports camps, famous shops, clubs and other functional groups. Next, Chen out of hand. By the year 2005, Tongluowan's expansion had peaked.

The state of affairs took place however in October 2005 a transition. Because the expansion too fast, Tongluowan management level, along with Tongluowan Lanzhou store serious supplier runs, Tongluowan forced to close the store. Since then, similar events have taken place throughout the country. By June 30, 2006, Indonesia's first consortium of the group's official Tongluowan department store, the stunning momentary Tongluowan from the curtain.

to Hong Kong Money (2007)

more than 10 years ago, a young man named Zhunglu opened a 500-square-metre shop with tens of thousands of dollars borrowed. After more than more than 10 years of development, from the small shop Zhunglu became Shenzhen hundred Jia Hua Industrial Development Co., Ltd. 's big Boss, its subordinates of the Jiahua department store has become a strong team in Shenzhen department store. May 21, 2007, Jiahua department store in the Hong Kong Stock Exchange on the main board of the official listing transactions, the first in Guangdong Province in the overall listing of the main board of retail enterprises.

In addition to Shenzhen Jiahua department store, the successful listing of Zhejiang Yintai Department store, Hong Kong New World department stores.

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